The following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in College Station, a university town in Texas. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $70. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Hubert, green (triangle symbols) for Kate, purple (diamond symbols) for Manuel, tan (dash symbols) for Poornima, and orange (square symbols) for Shen. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) (?) 160 140 PRICE (Dollars per motor scooter) 8 8 8 8 8 8 120 100+ 0 0 1 Hubert 2 Kate Shen Poornima Manuel 3 4 5 QUANTITY (Motor scooters) Market Price 6 7 8 Based on the information on the preceding graph, you can tell that producer surplus in this market will be $ Suppose the market price of a motor scooter increases to $110. Hubert Kate Manuel Poornima Shen will sell motor scooters at the given market price, and total
The following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in College Station, a university town in Texas. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $70. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Hubert, green (triangle symbols) for Kate, purple (diamond symbols) for Manuel, tan (dash symbols) for Poornima, and orange (square symbols) for Shen. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) (?) 160 140 PRICE (Dollars per motor scooter) 8 8 8 8 8 8 120 100+ 0 0 1 Hubert 2 Kate Shen Poornima Manuel 3 4 5 QUANTITY (Motor scooters) Market Price 6 7 8 Based on the information on the preceding graph, you can tell that producer surplus in this market will be $ Suppose the market price of a motor scooter increases to $110. Hubert Kate Manuel Poornima Shen will sell motor scooters at the given market price, and total
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in College Station, a university town in
Texas. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $70.
Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Hubert, green (triangle symbols) for Kate,
purple (diamond symbols) for Manuel, tan (dash symbols) for Poornima, and orange (square symbols) for Shen. (Note: The name labels are to the
right of the corresponding segment on the supply curve.)
Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70.
(Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.)
PRICE (Dollars per motor scooter)
160
140
120
100
80
60
40
20
0
0
1
Hubert
2
Kate
Shen
Poornima
Manuel
4
5
3
QUANTITY (Motor scooters)
Market Price
6
7
8
Based on the information on the preceding graph, you can tell that
producer surplus in this market will be $
Suppose the market price of a motor scooter increases to $110.
Hubert
Kate
Manuel
Poornima
C
Shen
will sell motor scooters at the given market price, and total
Transcribed Image Text:Based on the information on the preceding graph, you can tell that
producer surplus in this market will be $
Suppose the market price of a motor scooter increases to $110.
On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell a motor
scooter at the new market price: blue (circle symbols) for Hubert, green (triangle symbols) for Kate, purple (diamond symbols) for Manuel, tan (dash
symbols) for Poornima, and orange (square symbols) for Shen. (Note: If a person will not sell a motor scooter at the new market price, indicate this
by leaving their rectangle in its original position on the palette.)
PRICE (Dollars per motor scooter)
160
140
120
100
80
60
40
20
0
0
1
Hubert
2
Kate
Manuel
Shen
Poornima
to
Market Price
5
3 4
QUANTITY (Motor scooters)
6
7
8
Hubert
Kate
Manuel
Poornima
will sell motor scooters at the given market price, and total
Shen
(?)
Based on the information in the second graph, when the market price of a motor scooter increases to $110, the number of sellers willing to sell a
and total producer surplus
to $
motor scooter
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